Huge surge in people topping up their State pension

Figures published today by HMRC show a huge surge in the number of people paying voluntary National Insurance Contributions to top up their state pension record in the last two years. 

The latest report shows that in 2018/19 £119.3m was paid in voluntary ‘Class 3’ National Insurance Contributions.  This compares with just £12.8m in 2016/17 – a nine-fold increase in just two years.  

Although a small amount of voluntary NICs is accounted for by people filling gaps to protect their entitlement to short-term benefits, the surge in payments is likely to reflect the introduction of the new state pension in 2016 which gives large numbers of people the opportunity to boost their pension through voluntary contributions.